UK digital bank Starling Bank raises £40 million

UK digital bank Starling Bank has raised £40 million in a funding round led by JTC and Merian Chrysalis Investment Company Limited.

“This additional funding from our existing investors demonstrates their commitment both to Starling and to our small business and personal customers who need our support now more than ever.” – Anne Boden, founder and chief executive of Starling Bank.

The investment from Starling’s existing investors follows a £60 million investment in February 2020, bringing the total raised by Starling in 2020 to £100 million. Since its launch in 2014, the bank has raised £363 million.

Starling now has more than 1.4 million current accounts, including 155,000 business accounts, since launching its banking app in May 2017. Its deposit base has more than doubled in the last six months and it now holds more than £2.4 billion on deposit.

According to the company, it is the fastest-growing bank for small and medium-sized enterprises (SMEs) in Europe and now holds a 2.6% share of the UK’s SME banking market. It has almost £500 million of SME lending on its balance sheet, with further commitments raising the total to almost £1 billion.